Answer:
Accounts receivables 540,000 debit
Sales revenues 540,000 credit
Cash 581,000 debit
Accounts Receivables 581,000 credit
Allowance for bad debt 5,000 debit
Account receivables 5,000 credit
Bad debt expense 16,200 debit
Allowance for bad debt 16,200 credit
Question: journalize September events and reocgnize the bad dbet expense assuming 3% of credit sales
Explanation:
We need to record the events during september:
the sales on account will increase Account Receivables.
The collection decrease it.
The write-off under the allowance method will not reocngize any expense We decrease the accounts receivable agains t the allowance for the full amount
the expected bad debt on credit sale is 3%
540,000 x 3% = 16,200
this increase the allowance and declares the bad debt expense associate with the sales of the period
